Which banks have reduced interest rates in response to the Reserve Bank of Australia cutting the cash rate to the record low of 1.25%?
Some Lenders have already announced they will pass on the full 0.25% rate cut to their variable rate home loan customers, others are only passing on a portion of the cut and some Lenders are yet to announce their response to the RBA cash rate cut. Below is a list of Lenders who have already announced a rate reduction since the RBA decision.
- AMP – full rate reduction of 0.25%
- ANZ – partial rate reduction of 0.18%
- Auswide – full rate reduction of 0.25%
- Bankwest – full rate reduction of 0.25%
- Citibank – full rate reduction of 0.25%
- Commonwealth Bank – full rate reduction of 0.25%
- Firstmac – partial rate reduction 0.20%
- ING – full rate reduction of 0.25%
- Macquarie – full rate reduction of 0.25%
- ME Bank – full rate reduction of 0.25%
- NAB – full rate reduction of 0.25%
- Newcastle Permanent – full rate reduction of 0.25%
- Plan Lending – full rate reduction of 0.25%
- RAMS – partial rate reduction of 0.20%
- St George- partial rate reduction of 0.20%
- Suncorp- partial rate reduction of 0.20%
- Virgin Money – partial rate reduction of 0.22%
- Westpac – partial rate reduction 0.20%
What does this mean for you ?
For home owners with a variable loan, depending on your mortgage amount, you could soon be saving hundreds of dollars a year. Below is an example of what you could save based on a 30 year loan with principle and interest repayments.
|Loan Amount||Current Rate||Current Monthly Repayment||New Rate||New Monthly Repayment||Monthly Savings||Annual Savings|
These reductions don’t happen immediately, if you haven’t already heard from them, your current Lender should be in touch with you to advise when the rate reduction will commence but you should expect it to happen before the end of June.
Property prices are still low but the worst could be over
According to the latest Core Logic Home Value figures, national Australian property values fell 0.4% in April and 7.3% annually however, the rate of decline is starting to slow and housing market conditions may have moved through the worst of the downturn.
With these changes to interest rates and the end of the financial year just around the corner, now is the time to get in touch with a Mortgage Broker to see how your home loan compares to others on the market. It won’t cost you anything to get a home loan comparison but it could save you thousands.
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